Wolford : Half Year Report 2022 (corrected version, incorrectly reported on 09.23.2023 to 01.17.2022)

Looking

FORWARD

Half-year Financial

Report 2022

(JANUARY 2022 - JUNE 2022)

Wolford Group

IN FIGURES

KEY EARNINGS FIGURES

Sales	in EUR million
EBIT	in EUR million
Earnings before tax	in EUR million
Earnings after tax	in EUR million
Investments	in EUR million
Free cash flow	in EUR million
Employees (average)	FTE

JAN.-JUN. 2022	JAN.-JUN. 2021	CHANGE IN %
54.26	41.94		29.38
-16.92	-14.79		-14.43
-19.60	-16.62		-17.94
-19.32	-13.03		-48.24
7,744	0.18		>100
-6.89	-9.17	24.85
1,093	1,101		-0.73

KEY BALANCE SHEET FIGURES		06/30/2022	12/31/2021		CHANGE IN %
Equity	in EUR million	-5.49	15.24		>-100
Net debt (excl. leases)	in EUR million	17.10	0.29		> 100
Working capital (excl. leases)	in EUR million	25.26	32.13		-21.37
Balance sheet total	in EUR million	128.76	134.65		-4.38
Equity ratio	in %	-4.3	11.3		>-100

KEY SHARE FIGURES

Earnings per share	in EUR
Annual high	in EUR
Annual low	in EUR
Share price at end of period	in EUR
Number of shares (weighted average)	in thousands
Market capitalization at end of period	in EUR million

JAN.-JUN. 2022	JAN.-JUN. 2021	CHANGE IN %
-2.91	-1.97		-48.24
7.60	10.40		-36.92
5.50	7.10		-22.54
5.60	9.15		-38.80
6,631	6,631		0.00
37.13	60.67		-39.80

SALES BY MARKET, in percent	SALES BY DISTRIBUTION CHANNEL, in percent
Asia/Oceania 6 %		Private	Boutiques 45 %
North America 24 %		label 2 %
				Department
				stores 5 %
				Factory
		Germany 14 %		outlets 6 %
			Specialist
U.K. and Ireland 9 %		retail 6 %
France 8 %		Online business 11 %
Austria 6 %			Concession
Rest of Europe 33 %			shop-in-shops 25 %

CONTENTS

Foreword by the Management Board
	02
Group Management Report
06
Development in the First Half of 2022		08
Opportunities and Risks		14
Outlook	15
Interim Consolidated Financial Statements (IFRS)
	16
Consolidated Statement of Comprehensive Income		18
Consolidated Cash Flow Statement		19
Consolidated Balance Sheet		20
Consolidated Statement of Changes in Equity		21
Segment Reporting		22
Notes to the Half-year Financial Statements		23
Further Information
	34
The Wolford Group at a Glance		36
Financial Calendar	38
Contact & Imprint		39

01	02	3	04
Company	Interim Management Report	Interim Financial Statements	Further Information

01

Foreword by the

MANAGEMENT BOARD

Dear Shareholders,

The topline performance in the first six months of the 2022 financial year (January to June) is upward, confirming the positive trend we had targeted at the end of 2021. At the same time, market conditions became worse: the war between Ukraine and Russia is affecting sales across Europe, and strict COVID-Policies in China are disrupting one of the fastest growing markets. The climate is also cooling in the financial markets as interest rates rise and supply chains remain fragile. Inflation is higher than it has been in decades, energy costs are multiplying, as are the costs of raw materials.

Increase of sales across all channels; growth outpaces market trend

With a turnover of €54.3 million for the reporting period January to June 2022, we record an improvement of €12.3 million (29.4%) compared to the first half of 2021. Looking at like-for-like growth excluding licensing business, this figure is +40%. This puts us at the upper end of the scale in relation to the reference luxury goods sector and shows a development that we have not experienced for years.

The growth in turnover is distributed across almost all geographical regions and distribution channels. The USA developed particularly strongly with a plus of 40%. In EMEA, sales grew by 30% despite the war. And in the Asia/Oceania region, we were able to slightly exceed the previous year's level despite the pandemic. Both retail and wholesale saw double-digit growth at 46% and 26% respectively. Sales via the specialized trade improved by almost 60%. The online business also continues to develop positively.

02

01	02	03	04
Company	Interim Management Report	Interim Financial Statements	Further Information

Silvia Azzali,	Paul Kotrba,
Chief Commercial Officer (CCO)	Chief Operating Officer (COO)

The W, our Wolford Athleisure collection that we launched in 2020, continues to perform well and demonstrates the effectiveness of our brand vision. The brand is demonstrating its ability to respond to real customer needs, particularly in our key markets, and proving that consumers see Wolford as a leader in high quality products and exceptional materials. In the USA, The W collection grew +36%, with very good performance across all channels. At Group level, The W collection has grown by 22% and already accounts for a share of 23% of seasonal sales, impressively confirming the newly adopted brand strategy.

Earnings continue to be negative due to price increases and necessary investments; focus on further measures to increase operating efficiency

On the earnings side, the figures are still sober at the moment: EBIT at the end of the first half of the year was €-16.9 million, another 14.4% below the previous year. The background is on the one hand increased operating costs. Driven by inflation and shortages on the procurement markets, prices for materials, paper, energy and logistics rose, in some

03